Media mogul Richard Desmond has filed a lawsuit against the UK Gambling Commission over the National Lottery license selection process. [Image: Shutterstock.com]

Big money

The decision by the UK Gambling Commission (UKGC) to award the fourth-ever National Lottery license to Allwyn Entertainment has generated plenty of controversy. Camelot had operated the lottery since its inception in 1994, but Czech-based Allwyn was preferred this time around.

The selection process has led to a lot of consternation, with a media mogul now looking for answers. Richard Desmond is suing the UKGC for rejecting his bid to win the ten-year license through his firm Northern & Shell. He will seek up to £200m ($253m) in the suit after spending £17.5m ($22m) to submit his lottery bid.

legal expenses may have to come from funds designated for good causes

Commenting on the suit, the UKGC’s Chief Executive Andrew Rhodes said any potential damages or legal expenses may have to come from funds designated for good causes. Conservative MP Damien Moore has called on Desmond to drop the suit, accept the regulator’s decision, and move on.

An unlikely bid

Desmond believes his bid would have faired better if it wasn’t for the regulator’s mistakes. A Northern & Shell spokesperson said that the lawsuit will help answer “serious public interest questions” relating to the awarding of the lottery contract.

The UKGC reportedly labeled Desmond’s bid “fanciful,” a determination that meant it ended far behind in the scoring. One of the starkest differences between the bidders was Desmond’s plan to give just 57.5% of the lottery money to good causes, compared to 85.7% for Camelot, and 87.2% for Allwyn.

Richard Desmond set up Northern & Shell, which operates The Health Lottery, and has owned numerous celebrity and pornographic magazines, as well as Express Newspapers.

According to The Guardian, Desmond claims the UKGC committed various errors when scoring proposals, didn’t give every bidder an equal chance, and failed to provide any feedback that could have led to him withdrawing early from the process to save money.

Not the first legal action

Camelot previously filed a lawsuit against the UKGC over the selection process before dropping it in September 2022. It also separately sought significant damages for losing the contract. Allwyn officially bought the Camelot UK subsidiary at the beginning of this year for £100m ($126m), which brought to an end any further challenges.

The company already operates lotteries in numerous countries

Allwyn will take over the operation of the lottery in February 2024, with the acquisition intended to ensure that there is a smooth transition process. The company already operates lotteries in numerous countries, including Austria, Greece, Italy, Cyprus, the Czech Republic, and the US.